Update shared on 04 Nov 2025
Fair value Decreased 5.02%Apple Hospitality REIT's analyst price target has been adjusted downward from $13.60 to $12.92, as analysts cite moderating discount rates along with slightly improved profit margins and revenue growth projections.
What's in the News
- Apple Hospitality REIT, Inc. updated its 2025 earnings guidance, projecting net income in the range of $162 million to $175 million. This reflects a lower outlook due to economic uncertainty and a potential government shutdown (Company filing).
- Operational adjustments for full-year 2025 include a decrease in Net Income guidance by $5.5 million and a decrease in Comparable Hotels RevPAR Change by 100 basis points. Adjusted Hotel EBITDA Margin is expected to increase by 20 basis points due to strong cost control measures (Company filing).
- From April 1, 2025 to June 30, 2025, the company repurchased 1,432,127 shares for $16.87 million, completing the share buyback of over 16.5 million shares since 2015. This represents 7.28% of shares outstanding (Company filing).
Valuation Changes
- Consensus Analyst Price Target: Decreased from $13.60 to $12.92, reflecting a modest downward adjustment.
- Discount Rate: Lowered from 8.65% to 7.94%, indicating a slightly more favorable market environment.
- Revenue Growth: Upgraded from 1.71% to 1.92%. This shows a slight improvement in projected top-line performance.
- Net Profit Margin: Increased from 11.97% to 12.12%. This suggests a marginal gain in anticipated profitability.
- Future P/E Ratio: Reduced from 22.18x to 20.16x. This points to lower expected valuation multiples.
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